Search results for "public finance"

Equilibrium mergers in a composite good industry with efficiencies

2014

This paper studies equilibrium merging behavior in composite good industries. Component producers face the option to either merge with a similar component producer (horizontal merger) or a complementary one (complementary merger) of a composite good. Focusing only on strategic reasons, complementary mergers arise at equilibrium only when composite goods are very differentiated while horizontal mergers otherwise. Next, when efficiencies are considered, the level of marginal cost saving required for a horizontal merger in a composite industry to result in a non- increase in the upward price pressure index (UPPI) is greater as compared with the one in a regular industry. This result can be use…

Redistribution of tax resources: a cooperative game theory approach

2021

AbstractWe consider the problem of how to distribute public expenditure among the different regions of an economic entity after all taxes have been collected. Typical examples are: the regions that make up a country, the states of a federal country, or the countries of a confederation of countries. We model the problem as a cooperative game in coalitional form, called the tax game. This game estimates the fiscal resources collected in each region, or coalition of regions, by differentiating between what comes from economic activity within each region and what comes from trade with the other regions. This methodology provides a measure of the disagreement within a region, or coalitions of re…

The optimal degree of commitment in a negotiation with a deadline

2004

This note explores the consequences of a player's freedom of choice over his degree of commitment for the bargaining outcome. In particular, we modify the nonstationary structure of Fershtman and Seidmann (1993)'s bargaining by allowing one player to possess imperfect commitments where the degree of commitment is chosen prior to the negotiation stage. We show that a player optimally chooses an intermediate degree of irrevocability provided the costs of increasing the degree of commitment are small enough. In this case, not only an immediate agreement is reached but also the commitment is effective.

Duopoly signal jamming

1993

This paper examines a repeated duopoly market with heterogeneous outputs. Firms have (common) prior beliefs over the values of an unknown parameter of each firm's demand curve. Firms cannot observe rivals' quantities, but can observe market prices, which are subject to random disturbances and hence provide noisy information that firms use to update their beliefs concerning the unknown parameters' values. Each firm can potentially signal jam, or strategically vary its output level in order to manipulate the distribution of likely market prices and hence the likely inferences drawn by the opponent. We find that the opportunity to signal-jam introduces two conflicting effects, arising out of t…

Scoring rules: A cooperative game-theoretic approach

1999

In this work we define the game of the alternatives for each preference profile, and establish relations between scoring rules and cooperative solution concepts for that game, such as the family of semivalues and the family of least square values.

Governing Local Area Development through Dynamic Performance Management

2017

Several attempts of local areas development fail due to a predominant attention to the internal performance of public organizations. The perspective of local area development may enhance performance management in public entities by considering: a) their outcomes in the local area; b) the inter-institutional relationships actable with other local areas’ organizations to achieve such outcome; c) the improvement of the activity of other social institutions, enterprises and families, through networking and trust. This paper proposes a dynamic performance management (DPM) conceptual model to govern local area development and includes a case study of the Integrated Water System of Agrigento, Ital…

The Introduction of the “Balanced Budget” Principle into the Italian Constitution: What Perspectives for the Financial Autonomy of Regional and Local…

2013

This paper analyses the impact on regional and local authorities of Articles 117 and 119 of the Italian Constitution as amended by Constitutional Law no. 1/2012. In particular, it attempts to verify whether the new formulation of these constitutional provisions materializes the risk of a significant reduction in the financial autonomy of both Regions and Local Governments. With the constitutional reform the legislative competence of “harmonization of public account” has become an exclusive State competence, the “balanced budget” principle has been extended to Regions and local authorities and public borrowing has been broadly prohibited. What is the actual significance of the changes introd…

Essays in optimal taxation and dynamic mechanism design

2010

Doing Math in Mussolini’s Pocket : Ernesto Rossi and Fascist Public Finance (1926-1930)

2023

This essay deals with the brief but intense collaboration of Ernesto Rossi with the «Riforma Sociale», a prestigious journal of economics and social sciences founded by Francesco Saverio Nitti in 1894 and directed by Luigi Einaudi since 1908. Between 1926 and 1930, Rossi authored seven long essays on issues of public finance, applied economics, and economic statistics that have been relatively neglected by historiography. The rereading of these contributions allows us to illuminate some central moments in his training as an economist. This essay focuses on four articles he devoted to a deep analysis of the Italian budget and public debt, recalculating public revenues and expenses, with rela…

Considerazioni sulla finanza pubblica italiana tra il XIX ed il XX secolo

2015

This essay deals with the doctrinal debate emerging from articles and editorials by econoil mists published on newspapers such as Corriere della Sera, Il Giornale d'Italia, Il Sole, La Tribuna, Il Mattino, Il Secolo. The debate increased interest in items of public finance from 1890 to the rise of fascism in Italy. During thirty years, public debt, tax reform, fiscal matters, finance during war-time and problems relating to rail transport were the main debated topics. These issues show the economic and financial structure of the country in order to better understand the development opportunities which Italy enjoyed introducing the reform necessary to modernize the economic framework.